August Ellie Mae Millennial Tracker Sees Conventional Loans Reach Three Year High
PLEASANTON, Calif.--(BUSINESS WIRE)--Oct 3, 2018--Despite fierce competition for affordable homes in many markets this spring and summer, the percentage of conventional purchase loans to Millennial homebuyers has increased, compared to the same time period a year ago, according to the latest Ellie Mae Millennial Tracker™.
In August, 69 percent of all loans taken out by Millennials were conventional loans, the highest percentage since February 2015, and up from 64 percent in August 2017. FHA loans represented 27 percent of all closed loans, down from 32 percent the year prior. VA loans remained flat year-over-year at 2 percent. Three percent were undisclosed.
Eighty-nine percent of closed conventional loans to Millennial borrowers were for purchases, compared to August 2017, where only 84 percent of closed conventional loans were for new home purchases. Overall, purchases represented 90 percent of closed loans to Millennials in August, compared to 87 percent at the same time last year.
Year-over-year percentages of conventional purchase loans
“Our Millennial Tracker data shows that overall 69 percent of loans taken out by Millennials were conventional loans, the highest percentage since 2015 and up five percent from the same period one year ago,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “As the industry continues to understand Millennials and the new paradigms that a gig economy brings, we are seeing conventional loan products that are able to meet the needs of this important homebuying generation.”
Additional findings from the August 2018 Ellie Mae Millennial Tracker include:
Ellie Mae ® (NYSE: ELLI) is the leading cloud-based platform provider for the mortgage finance industry. The Ellie Mae Millennial Tracker is an interactive online tool that provides access to up-to-date demographic data about this new generation of homebuyers. It mines data from a robust sampling of approximately 80 percent of all closed mortgages dating back to 2014 that were initiated on Ellie Mae’s Encompass ® all-in-one mortgage management solution. Given the size of this sample and Ellie Mae’s market share, it is a strong proxy of Millennial mortgage indicators across the country. Searches can be tailored by borrower geography, age, gender, marital status, FICO score and amortization type.
For more information, visit http://elliemae.com/millennial-tracker.
ABOUT THE ELLIE MAE MILLENNIAL TRACKER
The Ellie Mae Millennial Tracker focuses on Millennial mortgage applications during specific time periods. Ellie Mae defines Millennials as applicants born between the years 1980 and 1999. New data is updated on the first Monday of every month for two months prior. The Millennial Tracker is a subset of our Origination Insight Report, which details aggregated, anonymized data pulled from Ellie Mae’s Encompass origination platform. Additional information regarding the Origination Insight Report can be found at http://elliemae.com/resources/origination-insight-reports. News organizations have the right to reuse this data, provided that Ellie Mae, Inc. is credited as the source.
ABOUT ELLIE MAE
Ellie Mae (NYSE:ELLI) is the leading cloud-based platform provider for the mortgage finance industry. Ellie Mae’s technology solutions enable lenders to originate more loans, reduce origination costs, and shorten the time to close, all while ensuring the highest levels of compliance, quality and efficiency. Visit EllieMae.com or call 877.355.4362 to learn more.
© 2018 Ellie Mae, Inc. , , , , , the Ellie Mae logo and other trademarks or service marks of Ellie Mae, Inc. appearing herein are the property of Ellie Mae, Inc. or its subsidiaries. All rights reserved. Other company and product names may be trademarks or copyrights of their respective owners.
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CONTACT: Ellie Mae, Inc.
Erica Harvill, 925-227-5913
Caitlin Coffee, 312-635-8204
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: OTHER CONSUMER TECHNOLOGY DATA MANAGEMENT INTERNET SOFTWARE MOBILE/WIRELESS PROFESSIONAL SERVICES BANKING FINANCE CONSUMER
SOURCE: Ellie Mae, Inc.
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PUB: 10/03/2018 09:00 AM/DISC: 10/03/2018 09:01 AM